Central Banks
ECB to Reach Rate Peak During Next Three Meetings, Villeroy Says
- Decision to slow pace of hikes was ‘wise and cautious’
- Policy transmission may take longer than past, Villeroy says
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The European Central Bank will reach a peak in interest rates during its next three meetings without necessarily hiking at each one, according to Governing Council member Francois Villeroy de Galhau.
The Bank of France chief said it was “wise and cautious” to have slowed the pace of increases to 25 basis points this month as officials monitor the effect of their unprecedented bout of monetary tightening to date.